Question 1

Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $1,000 and TFC = $2,500. What is the firms ATC?

Accepted Answer

A)  $2 
B)  $5 
C)  $7 
D)  $10 
A)  $2 
B)  $5 
C)  $7 
D)  $10

Question 2

-Using the above table, the AFC, the AVC, and the ATC when output is 1 unit are

Accepted Answer

A)  $10, $10, and $20, respectively. 
B)  $5, $10, and $15, respectively. 
C)  $0, $10, and $10, respectively. 
D)  $5, $10, and $5, respectively. 
A)  $10, $10, and $20, respectively. 
B)  $5, $10, and $15, respectively. 
C)  $0, $10, and $10, respectively. 
D)  $5, $10, and $5, respectively.

Question 3

Suppose that a firm is currently producing 1,000 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

Accepted Answer

A)  $1,500 
B)  $1,000 
C)  $501 
D)  $499 
A)  $1,500 
B)  $1,000 
C)  $501 
D)  $499

Question 4

If the firm can vary all factors of production, it is operating

Accepted Answer

A)  at a profit. 
B)  at a zero economic profit. 
C)  in the short run. 
D)  in the long run. 
A)  at a profit. 
B)  at a zero economic profit. 
C)  in the short run. 
D)  in the long run.

Question 5

-Refer to the above table. What is AVC at an output of 2 units?

Accepted Answer

A)  $7 
B)  $16 
C)  $45 
D)  $61 
A)  $7 
B)  $16 
C)  $45 
D)  $61

Question 6

-Using the above table, the TVC, the TC, and the MC when output is 4 units are

Accepted Answer

A)  $67, $72, and $22, respectively. 
B)  $16.75, $21.75, and $22, respectively. 
C)  $16.75, $21.75, and $30, respectively. 
D)  $67, $62, and $22, respectively. 
A)  $67, $72, and $22, respectively. 
B)  $16.75, $21.75, and $22, respectively. 
C)  $16.75, $21.75, and $30, respectively. 
D)  $67, $62, and $22, respectively.

Question 7

At an output at which MC is greater than ATC

Accepted Answer

A)  the ATC curve is downward sloping. 
B)  the ATC curve is upward sloping. 
C)  the AFC curve is upward sloping. 
D)  the AVC curve is downward sloping. 
A)  the ATC curve is downward sloping. 
B)  the ATC curve is upward sloping. 
C)  the AFC curve is upward sloping. 
D)  the AVC curve is downward sloping.

Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $1,000 and TFC = $2,500. What is the firms ATC?

-Using the above table, the AFC, the AVC, and the ATC when output is 1 unit are

Suppose that a firm is currently producing 1,000 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

If the firm can vary all factors of production, it is operating

-Refer to the above table. What is AVC at an output of 2 units?

-Using the above table, the TVC, the TC, and the MC when output is 4 units are

At an output at which MC is greater than ATC

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 22: The Firm: Cost and Output Determination

Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $1,000 and TFC = $2,500. What is the firms ATC?

-Using the above table, the AFC, the AVC, and the ATC when output is 1 unit are

Suppose that a firm is currently producing 1,000 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

If the firm can vary all factors of production, it is operating

-Refer to the above table. What is AVC at an output of 2 units?

-Using the above table, the TVC, the TC, and the MC when output is 4 units are

At an output at which MC is greater than ATC

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters